Maryland Severance/Separation Agreement Lawyer

Severance agreements (also known as separation agreements) set forth the terms and conditions of an employee’s departure from employment and typically provide compensation or other benefits in exchange for the employee agreeing to certain conditions, including a release of claims.

Use of Severance Agreements

Some employers have contracts or severance plans that guarantee employees severance if they are terminated. More commonly, however, employers can choose whether to offer a departing employee severance.

There are many reasons why an employer might choose to voluntarily offer a departing employee severance, including helping the employee bridge the financial gap until they find new employment, to secure the employee’s cooperation in transitioning their duties, or because the employer is concerned about potential claims.

Severance may be offered in the context of an employee resignation or the termination of a single employee or group of employees. The nature of the termination will dictate certain terms and conditions that may be required to be in the separation agreement.

Regardless of the context, a carefully drafted agreement that includes a release of claims helps protect the employer and employee and prevent further issues or disputes.

Components of a Severance Agreement

Severance agreements typically include a designated payment to the employee and a release of the employee’s claims against the employer. They can also include non-disparagement provisions, restrictive covenants (such as an agreement not to solicit the employer’s employees or customers), confidentiality terms (to secure the protection and return of the employer’s confidential information), and other promises made by the employee or the employer.

Severance Agreement Review and Negotiations, and the Role of an Experienced Employment Law Attorney

It is important to have experienced counsel review any severance agreement to ensure that the agreement complies with applicable state and federal law and provides maximum protections, while avoiding areas for potential future disputes. Experienced counsel can also assist employers and employees in negotiating the terms of severance agreements to reach an amicable exit.

Work with a Maryland Severance Agreement Lawyer

For assistance in drafting, reviewing or negotiating severance agreements, contact experienced counsel at Lerch Early.